According to the book, tax reference materials are usually classified as primary "authoritative" sources or secondary "reference" sources. Thus, primary source materials include the Internal Revenue Code (Statutory Authority), Treasury Regulations and Internal Revenue Service Rulings (Administrative Authority), and the various decisions of the trial courts and the appellate courts (Judicial Authority). On the other hand, secondary reference materials consist primarily of the various loose-leaf tax reference services. In addition, additional secondary materials include periodicals, textbooks and treatises, published papers from tax institutes and symposia, and newsletters. However, while the editorial opinions included in the secondary reference materials are extremely knowledgeable and comprehensive, neither the IRS nor the courts will afford any authoritative weight to these opinions. But, one exception is Mertens, Law of Federal Income Taxation. This tax service is often quoted in judicial decisions.

Lastly, both primary and secondary sources can be accessed through one of the computer-assisted research services. These electronic data bases are updated daily and contain many source documents not normally found in the traditional tax library.

The IRS Appeals officers are permitted in consider what is known as “hazards of litigation” in arriving at a settlement with the taxpayer. That said, the term “hazards of litigation” simply means the IRS’s chances of losing a particular issue or set of issues at trial.

Consequently, one of the most important things a tax lawyer does in a docketed case is create doubt in the mind of the Appeals officer that the IRS will prevail at trial. In addition, this is a decidedly different function than what a tax lawyer, CPA or Enrolled Agent is called upon to do when representing his or her client in an audit examination.

...﻿ECO 550 WEEK4 CHAPTER 7 AND CHAPTER 8 PROBLEMS
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Chapter 7
In the deep creek mining company described in this chapter table 7.1 suppose again that labor is the variable input and capital is the fixed input. Specifically, assume that the firm owns a piece of equipment having a 500-bhp rating. A. Complete the following tableLabor input L(#of workers
Total production TPL (=Q)
Marginal Product (MPL)
Average Product APL
1
2
34
5
6
7
8
9
10
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B. Plot the (i) total product, (ii) marginal product, (iii) average product functions.
C. Determine the boundaries of these three stages of production.
6. Consider the following short-Run production function (where input, ):
A. Determine the marginal product
B. Determine the average product function
C. Find the value of L that maximizes Q
D. Find the value of L at which the marginal product function takes on its maximum value
E. Find the value of L at which the average product function takes on its maximum value.
8. Based on the production function parameter estimates reported in Table 7.4:
A. Which industry (or industries) appears to exhibit decreasing returns to scale? (Ignore the issue of statistical significance.)
B. Which industry comes closest to exhibiting constant returns to scale?
C. In which will a given percentage increase in capital result in the largest percentage increase in output?
D. In what industry will a given percentage...

...﻿ECO 550 WEEK 2 CHAPTER 3 AND CHAPTER 4PROBLEMS
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Chapter 3: Problems 3, 4, and 7
3. The Olde Yogurt Factory has reduced the price of its popular Mmmm Sundae from $2.25 to $1.75. As a result, the firm’s daily sales of these sundaes have increased from 1,500/day to 1,800/day. Compute the arc price elasticity of demand over this price and consumption quantity range.
4. The subway fare in your town has just been increased from a current level of 50 cents to $1.00 per ride. As a result, the transit authority notes a decline in rider-ship of 30 percent.
a. Compute the price elasticity of demand for subway rides.
b. If the transit authority reduces the fare back to 50 cents, what impact would you expect on the ridership? Why?
7. In an attempt to increase revenues and profits, a firm is considering a 4 percent increase in price and an 11 percent increase in advertising. If the price elasticity of demand is −1.5 and the advertising elasticity of demand is +0.6, would you expect an increase or decrease in total revenues?
Chapter 4: Problems 5, 6, and 7
5. General Cereals is using a regression model to estimate the demand for Tweetie Sweeties, a whistle-shaped, sugar-coated breakfast cereal for children. The following (multiplicative exponential) demand function is being used:
6. The demand for haddock has been estimated as log + b log...

...﻿Week4 Practice Problems
11. List the five steps of hypothesis testing, and explain the procedure and logic of each
Step 1: During this step of hypothesis testing, the query is stated again as a research theory and a null theory regarding the populations. The null and research hypothesizes are the opposites of each other. This step is necessary because it explains the theory and recognizes the populations, which will be worked throughout the study.
Step 2: During this second step, the characteristics of the comparison distribution is determined. In instances that the null theory is correct, the comparison distribution is compared to the score depending on the sample’s outcomes.
Step 3: During this third step, the cutoff sample score on the comparison distribution at which the null hypothesis should be rejected is determined (Aron, Aron, and Coups, 2009). Here a researcher rejects the null hypothesis if the point of the cutoff sample score reaches or exceeds the sample score. If the null hypothesis is true the Z score is set as a score, which is actually unlikely.
Step 4: This is the step in which the test’s sample results are gathered and the sample’s score on the comparison distribution is determined.
Step 5: Lastly, this is when the decision whether the null hypothesis is rejected or not is made. A researcher either declares the test invalid or rejects the null hypothesis by comparing the cut off z score...

...
This file of BUS 640 Week4 Market Structures and Pricing Decisions Applied Problems comprises:
Market Structures and Pricing Decisions Applied Problems. Please, complete the following 2 applied problems in a Word or Excel document. Show all your calculations and explain your results. Submit your assignment in the drop box by using the Assignment Submission button.
1. What is the profit-maximizing price and output level? Solve this algebraically for equilibrium P and Q and also plot the MC, D and MR curves and illustrate the equilibrium point.
Since the business has a patent over the item, it can act as a monopolist while determining its profit maximizing level of output and price.
Business - General Business
Market Structures and Pricing Decisions Applied Problems . Please, complete the following 2 applied problems in a Word or Excel document. Show all your calculations and explain your results. Submit your assignment in the drop box by using the Assignment Submission button.
A small business which produces plastic vacuum-suction covers for round household dishes has a monopoly that is protected by a utility patent. The market demand curve for this product is estimated to be: – 25P where Q is the number of plate covers per year and P is in dollars. Cost estimation processes have determined that the firm’s cost function is represented by +...

...Your Decide Assignment Week4
ACC 553
1. John Smith tax issues:
a. How is the $300,000 treated for purposes of federal tax income?
In order to determining how the $300,000 fee was received as Federal income on the part Mrs. John Smith, we first have to determine the requirements for income. According to Code Sec. 61(a)(1) of the Internal Revenue Code (IRC) “gross income includes all income from whatever source derived,” that is including the following items: compensation for services, including fees, commission, fringe benefits and similar items (Intuit-TaxAlmanac, 2006). In John’s case, income received from fees that were paid by his client from rendered services will meet that requirement of gross income. Under Section 451(1)(a) of the Internal Revenue Code provides that the amount of any gross income is recognizes in the taxable year the taxpayer receives the item unless, under the method of accounting used in computing taxable income, the income is properly recognizes in different period (IRS.Gov, 2011). Mrs. John was compensated in the amount of $300,000 from fees of the service provided to his clients on the current tax year. Hence Mrs. John is control of cash once the fees were paid in full in the current year. According to Sec. 61(a)(1) John received income from fees in the current year, thus the amount received under Sec. 451 (a) will require that he recognized income in the taxable year, he received payment amount....

...benefits would John realize if he invested $15,000 in Jane's jewelry
making?
If they decided to use part of the $300,000 income for John, then they will be able to
deduct the $15,000 as part of either startup cost if it is the first year for the business, or
they can depreciate 100% of the assets using the 179 section that enable the business
owner to depreciate the full amount in one year.
Issue (f): Can Jane depreciate her vehicle or jewelry-making equipment? How?
She absolutely can depreciate her vehicle and jewelry-making equipment. However, she
will need to determine the use percentage of her vehicle for business and for personal
purposes. If the vehicle is 100% used for business purposes, then she can depreciate the
l Page 4
whole value of the vehicle in 5 years, but if it used about 50 % for example, then she will
only deduct 50% of the vehicle’s value. The business equipment will be deducted based
on the MACRS schedule, which varies based on the equipment’s nature.
3. John and Jane Smith’s Tax Issue
Issue (a): Should John and Jane file separate or joint tax returns?
The married filing jointly is in most cases provides more tax benefits than the married filing
separate. Although the tax-rate disparities between single filers and married couples have been
lessened in the two lowest tax brackets, spouses who file separately will find the tax rates for
them aren't as amenable in the upper ranges. In fact, a check of the tax...